A Winning Game In Retail; Not How Bloomberg Plays It

The business media has a responsibility to report facts accurately and fairly. Unfortunately, Bloomberg News recently spent considerable time and effort creating a juvenile video game to purportedly simulate the challenges of managing a retail property. The game includes scenarios such as negotiating rent with tenants or paying ongoing operating expenses. However, sadly, the game is rigged for players to lose and the property to fail, reflecting the tone of coverage of the industry that paints a gloomy, one-way and inaccurate vision in which no mall can ever be brought back.

Facts tell a much different story, and frankly, it’s a lot more fun than Bloomberg’s game.

Occupancy rates across categories of shopping centers are at 93.1%, with malls at 93.5%. Retail sales were up at the end of 2017, the strongest year for growth since 2014. On average, shoppers spent 18% more over the holiday season than they did in 2016, according to an ICSC survey. Jobless rates are at historical lows and consumer confidence is high,translating into momentum for the sector in 2018

Just this week, home improvement retailers announced they gearing up to hire more than 130,000 workers for the spring season against the backdrop of a tight job market. There is also a flurry of mixed-use retail projects underway from coast to coast – evidence that the industry is evolving with the needs of its consumers.

Shopping will continue to undergo fundamental changes: A new global report from consulting firm A.T. Kearney predicts that by 2030, 40% of all consumers will be digital natives. This will create an entirely new environment connecting shoppers to stores through devices, apps and artificial intelligence.

The retail real estate industry has always been cyclical, competitive and central to the strength of the economy. The sector accounts for one out of six American jobs. Bloomberg is the latest news outlet that clearly wants to create a sensational piece for the purposes of getting eyeballs on their site, instead of reporting in a fact based manner.

The best way to experience what’s going on in retail isn’t to wait for the media to tell us. And it’s not to play a rigged game. Go and check out a local mall yourself – you’ll be amazed by what you experience. It definitely beats staying at home and playing a childish video game.